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Note 15 - Goodwill and Other Intangible Assets | 9 Months Ended
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Sep. 30, 2024
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 15 – GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and certain other intangibles generally arise from business combinations accounted for under the acquisition method of accounting. Goodwill totaled $3.6 million at both September 30, 2024, and December 31, 2023, and represents the excess of the total acquisition price paid over the fair value of the assets acquired, net of the fair values of liabilities assumed in the Branch Purchase on February 24, 2023, and the purchase of four retail bank branches from Bank of America on January 22, 2016. Goodwill is not amortized but is evaluated for impairment on an annual basis at December 31 of each year or whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company performed an impairment analysis at December 31, 2023, and determined that no impairment of goodwill existed. Core deposit intangible (“CDI”) is evaluated for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable, with any changes in estimated useful life accounted for prospectively over the revised remaining life. As of September 30, 2024, management believes that there have been no events or changes in the circumstances that would indicate a potential impairment of CDI. The following table summarizes the changes in the Company’s other intangible assets comprised solely of CDI for the year ended December 31, 2023, and the nine months ended September 30, 2024.
|  | Other Intangible Assets |
|  |  |  |  |  | Accumulated |  |  |  |  |
|  | Gross CDI |  |  | Amortization |  |  | Net CDI |
Balance, December 31, 2022 |  | $ | 7,490 |  |  | $ | (4,121 | ) |  | $ | 3,369 |
Additions as a result of the Branch Purchase |  |  | 17,438 |  |  |  | — |  |  |  | 17,438 |
Amortization |  |  | — |  |  |  | (3,464 | ) |  |  | (3,464 | )
Balance, December 31, 2023 |  |  | 24,928 |  |  |  | (7,585 | ) |  |  | 17,343 |
Amortization |  |  | — |  |  |  | (2,757 | ) |  |  | (2,757 | )
Balance, September 30, 2024 |  | $ | 24,928 |  |  | $ | (10,342 | ) |  | $ | 14,586 |
The CDI represents the fair value of the intangible core deposit base acquired in business combinations. The CDI will be amortized on an accelerated basis over 10 years for the CDI related to the Branch Purchase, on a straight-line basis over 10 years for the CDI related to the Anchor Bank acquisition in November 2018 (“Anchor Acquisition”) and on an accelerated basis over approximately nine years for the CDI related to the purchase of four retail bank branches from Bank of America on January 22, 2016. Total amortization expense was $897,000 and $2.8 million for the three and nine months ended September 30, 2024, and $1.0 million and $2.5 million for the same periods in 2023, respectively. Amortization expense for CDI is expected to be as follows at September 30, 2024:
Remainder of 2024 |  | $ | 876 |
2025 |  |  | 3,191 |
2026 |  |  | 2,846 |
2027 |  |  | 2,500 |
2028 |  |  | 2,110 |
Thereafter |  |  | 3,063 |
Total |  | $ | 14,586 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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